EUR/USD holds firm around 1.1650 ahead of ECB signals – BBH

EUR/USD is steady near 1.1650 as ECB’s Isabel Schnabel signals comfort with markets pricing in a potential future rate hike, BBH FX analysts report.

Swaps curve points to steady ECB rates and gradual hikes

"EUR/USD is firm near 1.1650. ECB Executive Board member Isabel Schnabel signaled she’s 'rather comfortable' with market expectations that the next rate move is going to be a hike. The swaps curve implies steady ECB rates at 2.00% over the next twelve months and a full 25bps rate increase in the next two years. EUR/USD needs to break above resistance at 1.1690 to gain upside traction."